Textbook Problem

What does it mean to obtain a competitive advantage? What role does the cost management system play in helping to achieve this goal?

To determine

Explain the competitive advantage and the role done by cost management system to achieve the goal.

Explanation of Solution

Competitive advantage means the company provides the higher customer value for the same cost or lower cost or equivalent cost than their competitors. The information provided by the cost management system helps to identify the strategies and to create the cost leadership position.